Aug 19, 2020, 09:30 EST
Bronx, United States, Aug 19, 2020, 09:30 /Comserve / -- Eicher Motors’ subsidiary VE Commercial Vehicles Ltd (VECV) will be acquiring Volvo India’s bus business
New Delhi, India, 17, Aug 2020- Eicher Motors’ subsidiary VE Commercial Vehicles Ltd (VECV) will be acquiring Volvo India’s bus business. An agreement has been signed between Volvo Bus India (VBI) for its integration into VECV. VECV is the joint venture between Eicher Motors and the Volvo Group which was signed in 2008. VECV is responsible for the manufacturing and selling of Eicher brand of buses and trucks and also distribution and sale business of Volvo trucks along with providing aftermarket support for Volvo Buses in India.
Under this agreement, all of the employees and the bus manufacturing facility of Volvo Bus India at Bengaluru and Hosakote will be transferred to VECV. Also, no debt pending on VBI has been overtaken by VECV under this deal. The whole of the bus business will be integrated under VE Commercial Vehicles and will be offering both Volvo and Eicher branded buses. It’ll be responsible for the distribution, assembly, manufacture and sale of both Eicher and Volvo buses in India. VBI is currently a subsidiary of Volvo Group India Pvt Ltd (VGIPL). Hakan Agnevall, President of Volvo Bus Corporation expressed his delight on this merger and said that this is an opportunity to further build upon this successful joint venture. VECV will be headed by the current Senior VP of Volvo Bus Corporation, Akash Passey. Passeys’s commented on this merger and was looking towards this new division as a tool to engage further in the dynamic Indian market which is driven by trends such as e-mobility, urbanization and connectivity.
The transaction is expected to be complete within the next two months. This deal will make Eicher Motors a major player in the bus business with the widest range of products. In July 2020, Eicher became the first company in India to offer 100% connected vehicles in the commercial vehicle industry.
Eicher Motors is a leading player in the light and medium vehicle segment in the Indian market with its Revenue from Operations for the year 2019-20 being Rs 9,154 crores. However, it registered a drop of 6.6% from its 2018-19 revenue which was Rs 9,797 crores. Also, its share of profit of its joint venture-VECV for the year 2019-20 is Rs 32 crores which is way lesser than 2018-19 ie Rs 258 crores. But with this integration with VBI, Eicher Motors will be hopeful of increasing the revenue of its VECV arm and consolidate its position in the market.
About VECV- VE Commercial Vehicles or Volvo-Eicher Commercial Vehicles is a joint-venture between thr Volvo Group and Eicher Motores. It was started in 2008 with a common vision to drive modernization in the commercial transport business of India. This included the complete range of Eicher’s trucks and buses, distribution of Volvo’s trucks in India, manufacturing of engine and ecports for the Volvo Group and the component business of Eicher.
About Eicher Motors- Found in 1948, Eicher Motors Limited is one of the leading players in the Indian automobile industry with its range of products including motorcycles and commercial vehicles. It was incorporated in 1982 and is the flagship company of the Eicher Group in India. It is the parent company of Royal Enfield mid-size motorcycles in India.
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